Plans for the construction of a £25 billion tidal energy barrage that could generate five per cent of the UK’s electricity needs have been rejected by the UK government.

Hafren Power had developed the plans for an 18 km-long barrage between Lavernock Point near Penarth, south Wales, and Brean near Weston-super-Mare, south-west England, but the government has said that the project would not deliver value for money and could endanger the environment.

The proposed project would require state support for 30 years – twice as long as an offshore wind farm – the government said in a report. Electricity prices would also be higher than anticipated by Hafren, it added.

Other barrage schemes for the Severn have been proposed but similarly rejected on the grounds of cost. The government said in May 2011 that proposals from private enterprises for barrage projects could be submitted.

In June the House of Commons’ Energy and Climate Change Committee rejected Hafren’s plans over a "lack of information and a perceived lack of transparency" about the project.